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US Philly Fed Manufacturing Survey Falls Sharply

James Boston
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The Federal Reserve Bank of Philadelphia has published the monthly update to it’s respected Philly Fed indicator series. The headlining number from this collection is the Philly Fed Manufacturing Survey, the September reading has been announced as 22.5 following August’s 28.0 and a market consensus estimate of 23.0 this month.

The Philly Fed indicators are regionally specific but often provide reasonably solid guidance to the overall state of the US economy. In addition to the key Manufacturing Survey the Philly Fed publishes a number of other surveys worth keeping an eye on. The Business Conditions reading has been provided as 56.0 this month in comparison to August’s 66.4, the Employment indicator is now at 21.2 following last month’s 9.1 reading, New Orders are currently standing at 15.50 in comparison to the previous report of 14.70 and finally, the Prices Paid survey is now at 27.00 in comparison to last month’s 24.90.

Back to the broader economy, and earlier in the day the Department of Commerce released updates to the housing market. According to the report there was 0.998M Building Permits issued in the month of August, this is slightly less than the 1.052M provided in July, the market had expected a drop off in the number given the time of year but only to around 1.045M. It is a similar story in the Housing Starts figures, these are at 0.956M for August compared to July’s 1.117M and a market expectation of 1.040M.

There is some good news on the employment front however with a substantial fall in the Initial Jobless Claims. Data for the week ending 12th September shows that 280k individuals signed on compared to 316k the previous week, there was a positive expectation here but only for a fall to 305k. Continuing Jobless Claims for the week ended 5th September also came in better than expected at 2.429M in comparison to a prior reading of 2.492M.

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